2013 Transition–Year Stable Funding

Overview

The Ontario Municipal Partnership Fund (OMPF) is the Province’s main transfer payment to municipalities.

In February, the government announced that the OMPF would be reviewed and phased down to $500 million by 2016, as agreed to through the Provincial-Municipal Fiscal and Service Delivery Review (PMFSDR).

The following table identifies the increase in the combined benefit along with the phase-down schedule for the OMPF program, which was confirmed in the 2012 Ontario Budget.

Provincial Support Continues to Increase as OMPF is Phased Down
($ millions)

Despite the adjustments to the OMPF, the combined benefit will continue to increase, with provincial uploads more than offsetting the reduction to the program.

Since this past spring, the Province had several discussions with the Association of Municipalities of Ontario (AMO) on the review of the OMPF and has also received advice from many municipalities.

Based on the feedback received to date, the government has announced that 2013 will be a transition year for the OMPF, during which the Province will provide municipalities with $575 million in stable funding.

The 2013 transition year will also provide the opportunity to continue the dialogue with municipalities regarding the redesign of the program.

2013 OMPF Transition Year Stable Funding

The $575 million in OMPF Transition-Year Stable Funding will ensure that in 2013, municipalities receive a guaranteed level of support based on their 2012 OMPF allocation.

In 2013, municipalities in the north will receive at least 95 per cent of their 2012 OMPF allocation, while municipalities in other regions of the province will receive at least 90 per cent of their 2012 OMPF allocation.

During the transition year, these minimum funding levels will be enhanced up to 100 per cent for eligible municipalities with more challenging fiscal circumstances.

2013 Provincial Uploads

In 2013, the Province will deliver on its commitment in accordance with the timetable agreed to through the PMFSDR and continue the phased upload of Ontario Works benefit and court security and prisoner transportation costs. This builds on the previous uploads of Ontario Drug Benefits (ODB) and Ontario Disability Support Program (ODSP) costs.

As a result of the provincial uploads, 333 municipalities will see an estimated benefit of almost $1.4 billion in 2013.

Upload Benefit to Municipalities

Program

2013

ODB

$196 million

ODSP Administration

$85 million

ODSP Benefits

$733 million

OW Benefits (29% uploaded in 2013)

$145 million

Court Security and Prisoner Transportation (29% uploaded in 2013)

$36 million

OW Administration additional support

$173 million

Total Upload Benefit

$1.37 billion

2013 Combined Benefit

Since 2009, municipal benefits have been calculated as a combination of both the OMPF, and provincial uploads.

In 2013, the Province will provide a combined benefit of over $1.9 billion to 425 municipalities — more than three times the level of funding provided under the previous program. This support includes:

OMPF Transition-Year Stable Funding of $575 million to 388 municipalities; and

The upload of almost $1.4 billion in social assistance benefit program and court security and prisoner transportation costs to 333 municipalities.

Ongoing Support to Municipalities

The Province will provide municipalities with ongoing support of approximately $3.4 billion in 2013 — an increase of 200 per cent from the level provided in 2003. This support, in addition to the OMPF Transition-Year Stable Funding and provincial uploads, includes increased funding for land ambulance, upload of public health costs, as well as the provincial gas tax program.

By 2016, the Province will have increased ongoing support to municipalities to $3.7 billion a year — an increase of more than 240 per cent compared to 2003.

Source: Provincial-Municipal Fiscal and Service Delivery Review: "Facing the Future Together" (October 2008); adjusted to reflect the Ontario Works Administration funding model announced in 2011, and the phase-down of the OMPF confirmed in the 2012 Budget.

Additional Information

For additional information or for other general inquiries about the program, email your query and contact information to: info.ompf@ontario.ca.

To obtain the most current version of this document, visit ontario.ca/finance and enter 3337 in the find page field at the bottom of the webpage or contact the ministry at 1 866 668-8297 (1 800 263-7776 for teletypewriter).